Charles Drummond – P&L Accumulation Distribution

Knowing when to trade is part of P&L distribution.

THE ART OF TRADING BY CHARLES DRUMMOND 185 PP. (1993)

A sample segment from the seminar. The envelope is introduced in this work.

Before we go ahead, we need to know what Distribution and Accumulation is and why we use it.

Resistance performs according to distribution.

Accumulation is related to how support performs.

The market will become involved with geometric resistance if it goes up. Once it is into this resistance, the market energy should start to sell and become stronger than buying. We approach the art of monitoring resistance by observing the quality of the distribution. If the high of the price bar stops in resistance, and if the energy has enough in it, we can force a close down off the resistance. By observing the quality of this distribution as forced by the geometric tools presented, we enhance even further the concept.

When the pldot starts to hold on top, you have some energy to the downside. The pldot is distributing. It has some effect. The edge in trading is knowing when the pldot is going to be distributed. As we get to know the theory of the envelope, we can know when to expect this to happen. The idea that a lower time period will start to show distribution of a higher time period pldot was added to this.

In support, the opposite occurs. The close will move up off the bar lows to show good quality, because support will cause more buying than selling. You have the art of trading within reach if you look at the quality of distribution and the quality of accumulation. It gives you the knowledge to know when support and resistance is breaking down.

We have to ask why we are using an envelope concept.

We develop a clear, simple overview of how the market is supposed to behave if we know what to expect as prices deal with the envelope.

Prices will move from the bottom of the envelope to the top. The pldot will push prices out of the envelope. When prices are outside the envelope, opposing energy will force them inside, and we can observe this energy by knowing what patterns do the job. It is reliable and consistent.

I want to explain a terminology before we start. The wave of an ocean expresses true force when prices exit an envelope. We call it a wave. There are many text passages mentioning the word wave on the charts that follow. Unless you observe the high quality of opposing force, a sea wave always starts at the beginning of a new energy, the first time prices exit the envelope, and cautions you against going against it.

We are going to learn the concept of the envelope and how the airbag, r-su-zones, pldot show what is about to happen to it.

The book is included in the reduced-price package of supporting materials for those taking the full course.

Get. P&L Accumulation Distribution is by Charles Drummond. On. nextskillup.com

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